TITLE 17 PUBLIC
UTILITIES AND UTILITY SERVICES
CHAPTER 11 TELECOMMUNICATIONS
PART 23 RETAIL SERVICE PRICING STANDARDS
FOR MID-SIZE CARRIERS
17.11.23.1 ISSUING AGENCY: The
New Mexico Public Regulation Commission.
[17.11.23.1 NMAC -
N, 4-1-2006]
17.11.23.2 SCOPE: This
rule applies to all mid-size carriers.
[17.11.23.2 NMAC -
N, 4-1-2006]
17.11.23.3 STATUTORY AUTHORITY: NMSA
1978 Sections 63-9A-5.1 and 63-9A-5.2.
[17.11.23.3 NMAC -
N, 4-1-2006]
17.11.23.4 DURATION:
Permanent.
[17.11.23.4 NMAC -
N, 4-1-2006]
17.11.23.5 EFFECTIVE DATE: April
1, 2006, unless a later date is cited at the end of a section.
[17.11.23.5 NMAC -
N, 4-1-2006]
17.11.23.6 OBJECTIVE: The
purpose of this rule is to establish retail service pricing standards for
mid-size carriers.
[17.11.23.6 NMAC -
N, 4-1-2006]
17.11.23.7 DEFINITIONS: As
used in this rule:
A. basic services means retail telecommunications services
that provide residence or business customers with an individual primary line
providing voice grade access to the public switched network;
B. basket means a collection of retail telecommunications
services grouped together in order to calculate permissible changes in the
price ceilings for the services;
C. bundle means a combination of regulated services and
unregulated services in a single retail product offering; the unregulated
services may be obtained by a mid-size carrier from another entity;
D. commission notice means a letter of notice filed by a
mid-size carrier at the New Mexico public regulation commission;
E. cost means the cost incurred by a mid-size carrier to
provide a service in New Mexico;
F. customer notice means notice of changes in service
prices, terms, or conditions provided by a mid-size carrier to retail customers
via bill message or, at the option of the mid-size carrier, via bill insert,
direct mail, or publication in newspapers;
G. effective price means the current tariffed price for a
retail telecommunications service;
H. initial price means a mid-size carrier’s rates on file at
the commission on the first date that the carrier is regulated under this
rule. The first established price of a
new service introduced after the effective date of this rule shall be
considered its initial price;
I. mid-size carrier means any telecommunications company
with more than fifty thousand but less than three hundred seventy-five thousand
access lines in New Mexico;
J. non-basic services means retail telecommunications
services that are not a basic service, a switched access service or a wholesale
service governed by an interconnection agreement;
K. package means the combination of two or more regulated
services in a single retail product offering by a mid-size carrier;
L. price ceiling means the maximum price at which a basic
or non-basic service may be offered;
M. price floor means the lowest price at which a basic or
non-basic service may be offered;
N. promotion means the offering of a new or existing
telecommunications product or service at a new or reduced price or on modified
terms for a temporary period;
O. service area refers to the territory served by a mid-size
carrier within a single wire center.
[17.11.23.7 NMAC -
N, 4-1-2006]
17.11.23.8 PRICING FLEXIBILITY: In
recognition of factors that distinguish mid-size carriers from other carriers,
this rule establishes pricing flexibility for mid-size carriers and an
objective mechanism by which mid-size carriers may adjust prices.
A. Basic Services.
(1) Effective Price. The effective price of a basic service may be
any price that is less than or equal to the price ceiling for the service and
greater than or equal to the price floor for the service.
(2) Price Ceilings.
(a) The initial price ceiling for each basic
service shall be its initial price.
(b) Each price ceiling shall be adjusted once
annually by the percentage change in the average national price for residential
and business single lines reported in the most recent statistics of
communications common carriers published by the federal communications
commission.
(i) For residential and
business customers, price indices shall be calculated based on the tables
entitled “average residential rates for local service in urban areas” and
“average local rates for businesses with a single line in urban areas,”
respectively.
(ii) For residential and
business customers, the applicable price indices shall be calculated based on
the rows entitled “total monthly charge” and “total connection charge.”
(c) If the index declines in a year, the price
ceiling shall not be reduced; however, the price ceiling will not be increased
subsequently until the index surpasses its value in the year prior to the
decline.
(d) A mid-size carrier may change the price
ceiling of a basic service by filing tariff sheets reflecting the change and
providing notice as required in17.11.23.9 NMAC.
(3) Price Floors. The price floor for a basic service shall be
the average cost of providing the service in New Mexico.
(4) Rebalancing. The commission may revise the price ceiling
for a basic service as part of a revenue-neutral rate rebalancing, as provided
by NMSA 1978 Section 63-9A-5.1(E).
Subsequent changes to a revised price ceiling shall be based on
subsequent changes in the appropriate index.
B. Non-Basic Services.
(1) Effective Price. The effective price of a non-basic service
may be any price that is less than or equal to the price floor for the service.
(2) Price Ceilings.
(a) The initial price ceiling for each
non-basic service shall be its initial price.
(b) A mid-size carrier may change the price
ceiling of a non-basic service by providing notice.
(c) An increase in the price ceiling for a
non-basic service other than a custom calling service will be presumed to be
reasonable and will be permitted to become effective by the commission if the
increase is not greater than five percent in any twelve-month period.
(d) For purposes of calculating changes to
price ceilings for custom calling features other than public interest services,
such features shall be considered as a basket of services. An increase in the price ceiling for a custom
calling feature will be presumed to be reasonable and will be permitted to
become effective by the commission if the increase in the sum of the price
ceilings of the features in the basket, weighted by the number of subscribers
to each custom calling feature, is not greater than twenty percent and the
increase for any individual feature is not greater than fifty percent in any
twelve-month period beginning February 1 of each year.
(e) If the price ceiling of a non-basic service
is proposed to be increased by an amount that is greater than twenty percent in
any twelve-month period or if the price ceiling for any individual custom
calling feature is proposed to be increased more than fifty percent in any
twelve-month period, the commission may take such action as it deems
appropriate, including denial or suspension and investigation of the proposed
changes in price ceilings.
(3) Price Floors. The price floor for a non-basic service shall
be the average cost of providing the service in New Mexico.
(4) Public Interest Services. Notwithstanding the provisions of this rule,
a mid-size carrier shall not withdraw the following products and services
without express approval of the commission: 911, call trace, caller ID
blocking, non-published and non-listed directory services, and discounted
services, such as the low income telephone assistance program (LITAP) and
lifeline, provided to qualified persons.
A mid-size carrier may not increase the price ceiling for 911 services
by more than five percent in any twelve-month period without express approval
of the commission. A mid-size carrier
may not increase the price ceiling for other public interest services by more
than ten percent in any twelve-month period without express approval of the
commission.
C. Packages.
(1) Authority.
A mid-size carrier may offer a combination of basic and non-basic
services in a single package as authorized by NMSA 1978 Section 63-9A-5.1(G).
(2) Effective Price. The effective price of a package may be any
price that is less than or equal to the price ceiling of the package and
greater than or equal to the price floor of the package.
(3) Price Ceilings. The price ceiling for a package shall be less
than or equal to the sum of the price ceilings of the components of the
package. If the package permits
customers to choose elements of the package, the highest such price ceiling
shall be calculated assuming the customer chooses the most expensive compatible
options.
(4) Price Floors. The price floor for a package shall be the
sum of the price floors of the components of the package.
D. Bundles.
(1) Effective Price. The effective price of a bundle may be any
price that is less than or equal to the price ceiling of the bundle and greater
than or equal to the price floor of the bundle.
(2) Price Ceiling. The initial price ceiling for an existing
bundle is the initial price of the bundle.
The initial price ceiling for a new bundle is the initial maximum price
which shall be less than or equal to the sum of the price ceilings of the
regulated services plus the sum of the stand-alone prices of the unregulated
services.
(3) Price Floor. The price floor of a bundle is the sum of the
price floors of the regulated services plus the cost to the mid-size carrier of
acquiring the unregulated services.
E. Prices within Service Areas.
(1) One floor and one ceiling per
service. A single price ceiling and a
single price floor shall apply to each basic and non-basic service offered by a
mid-size carrier in the state.
(2)
Prices within and between service areas.
A mid-size carrier may charge different prices for basic and non-basic
services to customers in different service areas. A mid-size carrier shall charge the same
price for a basic or non-basic service to all customers within a service area
unless the mid-size carrier demonstrates to the commission that market
conditions vary within a service area.
F. Introducing or Withdrawing Non-basic Services, Packages
and Bundles.
(1) Commission notice of introductions. Subject to commission suspension under
17.11.23.10 NMAC, a mid-size carrier may offer a new non-basic service, bundle
or package by filing a tariff and commission notice no less than ten days prior
to the effective date of the tariff.
(2) Commission notice of withdrawals. Subject to commission suspension under
17.11.23.10 NMAC, a mid-size carrier may withdraw any non-basic service,
package or bundle from its tariff, except public interest services, by filing a
revised tariff and commission notice no less than ten days prior to the
effective date of the tariff.
(3) Consumer notice of withdrawals. A mid-size carrier shall notify affected
customers of a service to be withdrawn at least ten days before the service is
withdrawn.
G. Promotions. A
mid-size carrier may offer promotions such as special incentives, discounts, or
temporary rate waivers by filing a commission notice not less than three days
prior to the effective date of the promotion.
H. Individual Contracts.
A mid-size carrier may offer basic and non-basic services on an
individual contract basis pursuant to NMSA 1978 Section 63-9A-9 by providing
notice to the commission of the individual contract. If the commission does not act within five
days of receiving the notice, the individual contract shall be deemed approved
by the commission.
[17.11.23.8 NMAC -
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17.11.23.9 TARIFFS,
PRICE LISTS AND NOTICE.
A. Tariffs. A
mid-size carrier shall maintain a tariff on file with the commission that
contains the price ceiling and effective price by service area for each basic
service, non-basic service, package and bundle offered by the mid-size carrier.
B. Changes to Terms and Conditions. A mid-size carrier may propose non-price
related changes to terms and conditions in its tariffs by filing commission
notice and tariff sheets reflecting the modified terms and conditions. Subject to commission suspension under
17.11.23.10 NMAC, the modified terms and conditions of such non-price related
changes shall become effective ten days after a mid-size carrier files such
commission notice and tariff sheets.
C. Notice of Price Ceiling Changes and Effective Price
Changes.
(1) Notice.
Subject to commission suspension under 17.11.23.10 NMAC, a mid-size
carrier may change the effective price or the price ceiling of a basic service,
non-basic service, package or bundle by providing notice as provided in this
subsection.
(2) Notice of changes in price ceilings. No less than ten days prior to the effective
date of an increase in a price ceiling, the mid-size carrier shall provide
notice to the commission and to the New Mexico Attorney General and shall cause
notice of the increase to be published in a newspaper with statewide
circulation. For decreases to price
ceilings, commission notice shall be made no less than one day prior to the
effective date of the new price ceiling.
No customer notice of decreases in price ceilings is required.
(3) Notice of changes in effective
prices. Commission notice of increases
in effective price shall be made not less than ten days prior to the effective
date of the new price. Commission notice
of decreases in effective price shall be made no less than one day prior to the
effective date of the new price.
Consumer notice of effective price increases shall be made not less than
ten days or more than seventy-five days prior to the effective date of the new
price. No consumer notice of decreases in effective prices is required.
(4) Website posting of changes in effective
price. Each change in effective price
shall be reflected on a mid-size carrier’s website on or before the date the
change becomes effective.
(5) Affidavit Required. Any tariffed change in the effective price or
the price ceiling of a basic service, non-basic service, package or bundle must
be accompanied by an affidavit, signed by a person with personal knowledge,
stating that the effective price is above or equal to the price floor for the
service.
(6) Cost Studies. Upon request of the commission or commission
staff, a mid-size carrier shall produce a cost study demonstrating how the
mid-size carrier calculated the cost of a service.
[17.11.23.9 NMAC -
N, 4-1-2006]
17.11.23.10 SUSPENSION:
Pursuant to NMSA 1978 Section 63-9A-5.1(G), the commission may suspend a
tariff introducing a new service, withdrawing a non-basic service, or changing
the effective price or the price ceiling of a basic service or a non-basic
service under circumstances limited to ensuring compliance with applicable
rules, cost considerations, or a finding that the tariff filing is not
consistent with the public interest.
[17.11.23.10 NMAC -
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17.11.23.11 REVIEW AND REPORT TO LEGISLATURE: Two
years after the effective date of this rule, the commission and any mid-size
carrier shall independently review the provisions of this rule and,
subsequently, shall report their findings to the legislature. All or part of such findings may be reported
to the legislature either jointly or separately.
[17.11.23.11 NMAC -
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17.11.23.12 WAIVERS:
Pursuant to NMSA 1978 Section 63-9A-5.1(H), a mid-size carrier may petition
the commission for a waiver of any provision of this rule for good cause
shown. Without limitation, extraordinary
changes in a carrier’s costs caused by administrative, legislative, or judicial
action beyond the control of the carrier shall constitute good cause.
[17.11.23.12 NMAC -
N, 4-1-2006]
17.11.23.13 ADJUSTMENTS FOR EXOGENOUS COST
CHANGES: A mid-size carrier, staff, or other
interested party may petition the commission to incorporate exogenous cost
changes resulting from extraordinary changes in a mid-size carrier’s cost
caused by administrative, state or federal legislative changes, or judicial
action beyond the control of the mid-size carrier. Such adjustments make take the form of a
change in rates, or surcharges or credits on consumers’ bills. The commission shall issue a decision on a
petition for an exogenous cost adjustment no later than one-hundred and twenty
days after the petition is submitted.
[17.11.23.13 NMAC -
N, 4-1-2006]
HISTORY OF
17.11.23 NMAC: [RESERVED]